Thursday's big drop comes after shares soared nearly 50% on Wednesday following company's blockbuster fourth-quarter results. Snap reported a 72% spike in revenue versus a year ago and said it now has 187 million Daily Active Users, up 5% from the previous quarter.

The solid results have caused investors to revisit their belief that Snap's poor monetization would hinder its ability to grow revenue.

"While monetization growth has been slower than we previously expected, we continue to believe its audience and engagement represent a unique asset," Goldman Sachs analyst Heath Terry said in a recent note.